DEFAULT ADVISED
BRITISH FINANCIAL JOURNALS London, Deeember 11. The Sun's representative says the city is becoming increasingly dubious of the wisdom of Britain paying the instalment on Deeember 15. The Investors' Chronicle declares that payment in gold would be a profound mistake in view of the Government's contention that the gold reserves are unable to stand the strain. The Economist repudiates orthodoxy, and advises default, contending that this will be inevitable sooner or later. "If it is a crime in chilly Deeember it is equally base in palmy June, but a contract ceases to bind when" the contemplated conditions are not realised. There is no shame in a contract being broken by force majeure. Nobody expected the catastrophic decline in trade prices and it is fantastic to suggest that if Britain cut the war debfi tangle she would precipitate the wholesale repudiation of commercial obligations because these stand on quite a different category. The world must not suffer by Britain's fatal policy of doing the right thing too late."
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https://paperspast.natlib.govt.nz/newspapers/RMPOST19321213.2.34.3
Bibliographic details
Rotorua Morning Post, Volume 2, Issue 404, 13 December 1932, Page 5
Word Count
169DEFAULT ADVISED Rotorua Morning Post, Volume 2, Issue 404, 13 December 1932, Page 5
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